EU to phase out textile quota restrictions on China

Mumbai: The European Union will end quota restrictions on import of textiles from China and instead monitor textile imports with a joint surveillance system to be in place in 2008.

The `double checking system'' will track the issuing of licences for export in China and the import of goods into the EU and will operate for one year in 2008 following the end of quota restrictions on Chinese textiles and clothing, the EU commission said in a statement in Brussels.

The EU and China had reached an agreement in June 2005 on resuming China''s textile exports to the EU, after the expiry of quotas.

The joint surveillance system will cover eight categories of textiles and clothing from China, the EC commission said.

Although EU will monitor textile imports from China, the level of import will not be restricted, Xinhua news agency quoted the EU commission as saying.

"I welcome this further step in the cooperation between the EU and China in ensuring a smooth transition to free trade in textiles," said EU Trade Commissioner Peter Mandelson.

China''s textile industry also welcomed the European Commission''s decision to scrap quota limits on Chinese textiles next year, but said the EU could do more.

Chinese industry expects the EU to be more open about technology transfer and step up cooperation in brand and distribution network building, said an industry representative. He also called on the EU to be more patient with Chinese producers striving to meet rules on the level of permitted chemicals and other technical requirements.

Chinese textile exports to the EU stood at 419.3 billion in the first eight months of the year, up 0.88 per cent from the same period in 2006.